The company produces and sells the product. But her behavior is thus under the strong influence of the inverse of the product, the state of which is determined by what part of it is the life cycle. Going through the individual phases of the life cycle, the product has an impact on all areas and control functions requiring their respective modification. Depending on the phase in which the product is determined by the objectives and strategy chosen forms and methods of management creation and implementation of the product, construct management and information schemes, etc. For example, if the product development stage, management style must be creative forms of work organization flexibility and decision-making should include a greater degree of risk, at the stage of maturity management must exclude improvisation and risk should strictly focus on the financial aspects of production and marketing, with a view to ensuring the greatest possible flow of money.
There are three levels of impact of the product lifecycle on the strategic decisions of the company. The first level - is the level of the company strategy of behavior. In this case, the phase on which the product affects the choice of the company strategy of behavior in the environment: whether it will take to diversify or to expand markets or, on the contrary, chooses reduction strategy. Although the product has a significant influence on the choice of firm strategy should be remembered that in addition to the product has several powerful factors determining the selection of the company's strategy.
The second level of strategic decisions related to the actual product itself, and for the fact that to do with this product, make any changes in its production that change in the content of the product, etc. For example, with respect to the product while it is in maturity phase, the following strategies can be applied:
promotion of product brands: the intensive advertising of the brand, the development of the more attractive package, the extension of related services, to concentrate efforts on consolidating the already existing customers rather than attracting new ones;
increase product variety and variance: the introduction of a variety of different design details, different design, different colors, search for and the use of original and exclusive shapes, distinctive packaging, as well as multivariate auxiliary component parts;
increase the product of prestige: the improvement of its quality, the use of prestigious brands and packaging, promotion and retention of high-level prices, the preference of small sales volume in the markets in which customers are willing to buy at a high price, high volume sales at low and affordable prices in the mass market;
increasing the availability of the product: the expansion of the sales network, the use of different trading systems, the use of non-prestigious brands, allows you to sell goods at low prices, the expansion of service delivery systems, the creation of simplified models, etc.
There are three levels of impact of the product lifecycle on the strategic decisions of the company. The first level - is the level of the company strategy of behavior. In this case, the phase on which the product affects the choice of the company strategy of behavior in the environment: whether it will take to diversify or to expand markets or, on the contrary, chooses reduction strategy. Although the product has a significant influence on the choice of firm strategy should be remembered that in addition to the product has several powerful factors determining the selection of the company's strategy.
The second level of strategic decisions related to the actual product itself, and for the fact that to do with this product, make any changes in its production that change in the content of the product, etc. For example, with respect to the product while it is in maturity phase, the following strategies can be applied:
promotion of product brands: the intensive advertising of the brand, the development of the more attractive package, the extension of related services, to concentrate efforts on consolidating the already existing customers rather than attracting new ones;
increase product variety and variance: the introduction of a variety of different design details, different design, different colors, search for and the use of original and exclusive shapes, distinctive packaging, as well as multivariate auxiliary component parts;
increase the product of prestige: the improvement of its quality, the use of prestigious brands and packaging, promotion and retention of high-level prices, the preference of small sales volume in the markets in which customers are willing to buy at a high price, high volume sales at low and affordable prices in the mass market;
increasing the availability of the product: the expansion of the sales network, the use of different trading systems, the use of non-prestigious brands, allows you to sell goods at low prices, the expansion of service delivery systems, the creation of simplified models, etc.
The third level of strategic decisions relating to their individual product lifecycle phases is marketing strategies. These strategies define how marketing must work subsystem firms at different stages of the product life. Details of these strategies are described in marketing textbooks.
The product - is that manufactures and sells the company and the fact that the customer buys. Therefore, from the point of view of strategy, this concept can be considered as a means of customer satisfaction, as some developing phenomenon and as the primary means of competition in the market.
product Features
As a means of customer satisfaction product has two properties:
- Product characteristics that determine its membership of a particular commodity group.
- Characteristics of the product that will meet the specific needs of a particular customer.
To select items from a group of similar products, manufacturers are registered the brand of the product. In this case, the customer buys not only the product itself but also a certain guarantee of quality. For the manufacturer, the brand can act as a guarantor of protecting goods from copying competitors, as well as the brand helps to raise the prestige of the company.
Product Brand is very closely linked to its image. Product image is influenced by the image of the whole company, product quality, performance of similar products in the market, the buyer's preferences. The image is formed for a long time, but it can very quickly lose. Therefore, a firm must constantly make efforts to borrowing the positive image of the product.
Another characteristic of the product will be the label and packaging. These features of the product are, how to push the client to purchase and to make it impossible. The company also provides certain guarantees to the buyer in respect of the product. This increases the buyer interest in the product. This can be the guarantee of a quality product for warranty service, price guarantees, the return of the goods.
Product Lifecycle
As a developing phenomenon, the product passes a certain stage in its development.
1. The yield of the market. This first stage of the product to market. And to create a product, and to promote it required a lot of money and effort.
2. The growth of the product on the market. At this stage, there is a profit, expanding sales, dramatically increases demand the product. Now the company's efforts will be focused on attracting customers to their product and to fight for their place in the market.
3. The maturity of the product. At this stage, the market is saturated with product, it may be reduced profits from sales, increasing competition, resulting in lower product price.
4. Withdrawal from the market for the product. At this stage, the product profitability and demand for it is falling markedly. The company must decide how to most profitably withdraw the product from the market.
From that, at what stage the product will depend on the company's strategy, particularly the product promotion and marketing of the enterprise system.
competition Strategy
As a means of the competitive product has a strong position. The competitive environment is formed by five main groups.
1. Manufacturers of similar products. This competition within one industry.
2. Suppliers of equipment, materials, raw materials, semi-finished products, which largely will depend on the quality of the final product.
3. Buyers. They can affect the price and demand certain consumer properties of the product.
4. Potential producers of a like product. Can be switched to your product buyers.
5. Manufacturers of replacement products. This is the most dangerous group of competitors.
The company must continuously monitor the status of their product in a competitive market, to study the strengths and weaknesses of competitors of all levels. All this will take place in a constantly changing environment. It should be the very clear answer to the questions: what motivates the competitor that he is doing and what can be done? With this information, the company will always be able to define its strategy in promoting their product.
product Features
As a means of customer satisfaction product has two properties:
- Product characteristics that determine its membership of a particular commodity group.
- Characteristics of the product that will meet the specific needs of a particular customer.
To select items from a group of similar products, manufacturers are registered the brand of the product. In this case, the customer buys not only the product itself but also a certain guarantee of quality. For the manufacturer, the brand can act as a guarantor of protecting goods from copying competitors, as well as the brand helps to raise the prestige of the company.
Product Brand is very closely linked to its image. Product image is influenced by the image of the whole company, product quality, performance of similar products in the market, the buyer's preferences. The image is formed for a long time, but it can very quickly lose. Therefore, a firm must constantly make efforts to borrowing the positive image of the product.
Another characteristic of the product will be the label and packaging. These features of the product are, how to push the client to purchase and to make it impossible. The company also provides certain guarantees to the buyer in respect of the product. This increases the buyer interest in the product. This can be the guarantee of a quality product for warranty service, price guarantees, the return of the goods.
Product Lifecycle
As a developing phenomenon, the product passes a certain stage in its development.
1. The yield of the market. This first stage of the product to market. And to create a product, and to promote it required a lot of money and effort.
2. The growth of the product on the market. At this stage, there is a profit, expanding sales, dramatically increases demand the product. Now the company's efforts will be focused on attracting customers to their product and to fight for their place in the market.
3. The maturity of the product. At this stage, the market is saturated with product, it may be reduced profits from sales, increasing competition, resulting in lower product price.
4. Withdrawal from the market for the product. At this stage, the product profitability and demand for it is falling markedly. The company must decide how to most profitably withdraw the product from the market.
From that, at what stage the product will depend on the company's strategy, particularly the product promotion and marketing of the enterprise system.
competition Strategy
As a means of the competitive product has a strong position. The competitive environment is formed by five main groups.
1. Manufacturers of similar products. This competition within one industry.
2. Suppliers of equipment, materials, raw materials, semi-finished products, which largely will depend on the quality of the final product.
3. Buyers. They can affect the price and demand certain consumer properties of the product.
4. Potential producers of a like product. Can be switched to your product buyers.
5. Manufacturers of replacement products. This is the most dangerous group of competitors.
The company must continuously monitor the status of their product in a competitive market, to study the strengths and weaknesses of competitors of all levels. All this will take place in a constantly changing environment. It should be the very clear answer to the questions: what motivates the competitor that he is doing and what can be done? With this information, the company will always be able to define its strategy in promoting their product.
The company produces and sells the product. But it is at the same time under the strong influence of the feedback on the product, the state of which is determined by what part of it is the life cycle. Going through the individual phases of the life cycle, the product has an impact on all areas and control functions requiring their respective modification. Depending on the phase in which the product is determined by the objectives and strategy chosen forms and methods of management and the creation of realizatsieyprodukta, stroyatsyaupravlencheskiei information schemes, etc. For example, if at the stage of product development management style must be creative forms of work organization flexibility and decision-making should include a greater degree of risk, then stadiizrelostiupravleniedolzhnoisklyuchat improvisation and risk should strictly focus on the financial aspects, in order to ensure the highest possible production and marketing cash receipts
There are three levels of manifestation of the product position of influence on the scale of its life cycle in the strategic decisions of the company. The first level - is the level of the company strategy of behavior. In this case, the phase position of the product has an impact on what kind of strategy of behavior in the environment selects the firm. Does it take a course to diversify or to expand markets or, on the contrary, chooses reduction strategy? Although the product has a significant influence on the choice of firm strategy should be remembered that there are still some powerful addition to the product
factors determining the selection of the company's strategy (see Chapter 4).
The second level of strategic decisions related to the actual product itself, and for the fact that to do with the product, what changes to make in its production that change in the content of the product, etc. For example, with respect to the product, while it is in maturity phase, the following strategy can be applied.
1. Prodvizheniemarkiprodukta carried through intensive advertising of the brand, development boleeprivlekatelnoyupakovki, expansion soputstvuyuschihuslug, kontsentratsiiusiliyna strengthening already existing customers rather than attracting new customers.
2. Increasing the diversity and variance of the product through the introduction of a variety of different design details, different design, different colors, search for and use of original and exclusive shapes, use the distinctive packaging and mnogovariantnostivspomogatelnyhkomplektuyuschih details.
3. Increasing the prestige of the product by improving its quality, ispolzovaniyaprestizhnyhmaroki exclusive packages and improve retention rates at a high level, the small sales volume preferences in the markets in which customers are willing to pay high prices, high volume sales at low and affordable prices in the mass market.
4. Increased product availability by expanding its sales network, the use of different trading systems ispolzovaniyaneprestizhnyh brands, allows you to sell goods at a low price, the extension of service systems, the creation of simplified models, etc.
The third level of strategic decisions relating to their individual product lifecycle phases is marketing strategies. These strategies define how marketing must work subsystem firms at different stages of the product life. Details of these strategies are described in marketing textbooks.
There are three levels of manifestation of the product position of influence on the scale of its life cycle in the strategic decisions of the company. The first level - is the level of the company strategy of behavior. In this case, the phase position of the product has an impact on what kind of strategy of behavior in the environment selects the firm. Does it take a course to diversify or to expand markets or, on the contrary, chooses reduction strategy? Although the product has a significant influence on the choice of firm strategy should be remembered that there are still some powerful addition to the product
factors determining the selection of the company's strategy (see Chapter 4).
The second level of strategic decisions related to the actual product itself, and for the fact that to do with the product, what changes to make in its production that change in the content of the product, etc. For example, with respect to the product, while it is in maturity phase, the following strategy can be applied.
1. Prodvizheniemarkiprodukta carried through intensive advertising of the brand, development boleeprivlekatelnoyupakovki, expansion soputstvuyuschihuslug, kontsentratsiiusiliyna strengthening already existing customers rather than attracting new customers.
2. Increasing the diversity and variance of the product through the introduction of a variety of different design details, different design, different colors, search for and use of original and exclusive shapes, use the distinctive packaging and mnogovariantnostivspomogatelnyhkomplektuyuschih details.
3. Increasing the prestige of the product by improving its quality, ispolzovaniyaprestizhnyhmaroki exclusive packages and improve retention rates at a high level, the small sales volume preferences in the markets in which customers are willing to pay high prices, high volume sales at low and affordable prices in the mass market.
4. Increased product availability by expanding its sales network, the use of different trading systems ispolzovaniyaneprestizhnyh brands, allows you to sell goods at a low price, the extension of service systems, the creation of simplified models, etc.
The third level of strategic decisions relating to their individual product lifecycle phases is marketing strategies. These strategies define how marketing must work subsystem firms at different stages of the product life. Details of these strategies are described in marketing textbooks.
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